Joey Is Planning to Invest His Savings in a Fixed

question 17

Multiple Choice

Joey is planning to invest his savings in a fixed income fund. He manages to deposit $700 at the end of the first year, $500 at the end of the second year, $300 at the end of the third year, and $600 at the end of the fourth year. If the fund earns 6 percent interest each year, the terminal (future) value of this uneven cash flow stream at the end of Year 4 is _____. 

• A)$2,314
• B)$1,833
• C)$2,097
• D)$2,355
• E)$1,784

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Definitions:

Flexibility

The quality of bending easily without breaking, or the ability to adapt to new, different, or changing requirements.

Pupil

The adjustable opening in the center of the eye through which light enters and is focused on the retina.

Velocity

A physical vector quantity that represents the rate of change of position of an object with direction.

Flexibility

The ability to adapt to new, different, or changing requirements, conditions, or situations with ease and speed.